When a monopolist sells two units of output its total revenue is $600. When a monopolist sells three units of output its total revenue is $630. In order to sell three units of output instead of only two, the monopolist must
A. decrease its price by $30 per unit.
B. increase its price by $30 per unit.
C. decrease its price by $90 per unit.
D. make no change in price and increase output by one unit.
Answer: C
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Why is it that pure monopoly would not likely exist without government?
What will be an ideal response?
When OPEC raises the price of petroleum, American expenditures on oil imports increase, suggesting that
A. the United States’ elasticity of demand for imported oil is greater than one. B. the United States’ elasticity of demand for imported oil is less than one. C. imported oil and domestically produced oil are complementary goods. D. the short-run elasticity of demand for oil is greater than the long-run elasticity.
Exhibit 7-12 Marginal revenue and cost per unit curves
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If price is equal to OD for the firm shown in Exhibit 7-12, total profit is maximized when:
A. output is X. B. output is Y. C. output is Z. D. output is greater than Z.
Refer to the information provided in Figure 7.4 below to answer the question(s) that follow. 
Figure 7.4Refer to Figure 7.4. The marginal product of the second worker is
A. 10. B. 16. C. 20. D. 32.